It’s the Perfect Time for Pre-Sale Renovation. Here’s Why.

If you take a look at some of the recent media coverage, it may seem like the real estate industry, and a great deal of the economy, is on hold. iBuyers have temporarily stopped buying homes, OpenDoor slashed its workforce, and Compass has both laid off employees and scaled back on Compass Concierge.

But if you look at the seller and buyer behavior, you see a more complex story. This reduction in listings doesn’t indicate that sellers no longer want to list their homes, but rather they are uncertain that it’s the right time to sell and wary of having potential buyers in their homes.

According to an NAR study earlier this month, the majority of sellers—51%—are planning on delaying listing for just a couple of months. And 17% are staying on the market and taking advantage of virtual tours and communication. Only 9% are indefinitely delaying listing.

We can see similar patterns on the buyer side. The same NAR study found that the majority of buyers are only temporarily delaying their search, while nearly 20% are continuing to look right now despite COVID-19, and 22% are no longer looking because of job security concerns.

In the last couple of weeks pending sales have begun to rebound and are now up 6.2% from earlier in April.

We’re seeing this data correlate with how Curbio projects are playing out. This Maryland home was listed a couple weeks ago and was under contract in 9 days, in a region where the average days on market is 74.

Even though renovating right now may seem like an impossibility for homeowners preparing to sell—it’s not only possible, it’s critical. If sellers want to compete in the summer surge that we’re expecting in a few months, pre-sale renovations are imperative.

Post Pandemic, Buyers Will Still Demand Move-in Ready Properties

Today’s buyers overwhelmingly prefer move-in ready properties, especially millennials, who make up the majority of potential buyers. Millennials are more likely to have a family with two working parents, have longer commutes, working hours, and expect to stay in homes for shorter periods of times. As a result, they are turned off by homes in need of even minor repairs.

And you can bet that after being quarantined and up-close and personal with their homes’ flaws, (whether they currently rent or own) buyers will have even less tolerance for homes in need of care.

No matter the market, outdated properties spend more days on market and fetch lower sales prices—and this won’t change in a post-pandemic world.  Sellers should take advantage of the temporary slow down to make improvements now and attract buyers who have been eagerly waiting on the sidelines during the pandemic.

Instagram-Worthy Listings are a Must

According to NAR’s Home Buyer and Seller Generational Trends Report, the majority of buyers begin the home search process by looking at properties online, and that means that every property needs to be Instagram-worthy in order to attract the broadest possible audience. This was true before COVID-19, but now buyers are using online property searches to not only peruse homes, but to vet them and make a short list of properties worth leaving home for. And, again, millennials are more than comfortable making important life choices digitally.

Inventory will Surge

In most cities across the country, housing inventory has hit record lows, but with so many sellers postponing their listings, there will be a surge of homes on the market when stay-at-home orders begin to lift. When inventory increases, sellers will have to compete for buyers. Investing in renovations now is the best way to compete when the market opens up.

While pre-sale renovation is a no-brainer for sellers preparing for market this summer, some homeowners may be reluctant to embark on a home improvement project and let crews into their homes during these turbulent Covid times.  That’s why Curbio has rolled out our no-contact renovation strategy.

Watch this on-demand webinar to learn more.